The EUR/CHF exchange rate is currently range-bound.
The European Central Bank (ECB) has maintained interest rates while expressing concerns that a stronger euro could dampen inflation. Additionally, promising growth forecasts for the Eurozone may favor the euro's value. In contrast, the Swiss National Bank (SNB) cut interest rates recently to combat low inflation, which supports the Swiss franc's strength.
The near-term trading range for the EUR/CHF is expected to stay within a stable corridor, reflecting its recent performance around 0.9311. An upside risk includes a positive economic surprise in the Eurozone, while a downside risk may arise from renewed geopolitical tensions or further tariffs impacting Swiss exports.
The volatility in oil prices could also indirectly affect this exchange rate, as a decrease in oil prices may influence broader economic sentiments and inflation expectations, impacting the euro's strength against the franc.